Profits were also hit by a 1.6pc fall in like-for-likes as Morrisons battles against being underexposed in the fast-growing online and convenience store markets, and losing customers to discount retailers such as Aldi.

Watch Dalton Philips, chief executive of Morrisons, talk about "working at pace" to build its convenience and online businesses, which are the fastest growing parts of the grocery market:

John Lewis department stores and Waitrose supermarkets, said sales rose 7pc to £4.7bn in the half-year to July 27.

Watch Sir Charlie Mayfield, chairman of of the John Lewis Partnership, talk about expansion plans: